Analyst are Cutting Estimates on These 5 Tech Stocks

In this article, we discuss 5 tech stocks that analysts are cutting the estimates on. If you want to see more stocks in this selection, check out Analyst are Cutting Estimates on These 10 Tech Stocks. 

5. DigitalOcean Holdings, Inc. (NYSE:DOCN)

Number of Hedge Fund Holders: 26

DigitalOcean Holdings, Inc. (NYSE:DOCN) is a New York-based cloud computing company that offers on-demand infrastructure and tools for developers, start-ups, and small and medium-scale businesses. On July 13, Goldman Sachs analyst Gabriela Borges double downgraded DigitalOcean Holdings, Inc. (NYSE:DOCN) to Sell from Buy with a price target of $40, down from $54. The analyst sees “idiosyncratic opportunities for alpha generation” in software over the next year and prefers companies that “sell into defensive/counter-cyclical end markets with strong free cash flow profiles”, while remaining cautious on markets which are pressurized by macro headwinds or COVID normalization. For DigitalOcean Holdings, Inc. (NYSE:DOCN), the analyst observed that latest data points reflect soft demand in its primary end markets over the next 12 months after a COVID-driven boost in the last two years. She is more cautious on the company’s short-term fundamentals.

Among the hedge funds tracked by Insider Monkey, 26 funds were long DigitalOcean Holdings, Inc. (NYSE:DOCN) at the end of March 2022, compared to 25 funds in the previous quarter. Jeffrey Hoffner’s Engle Capital is the leading position holder in the company, with 800,000 shares worth $46.2 million.